JBIC finance and Africa(centered on SADC region)

March 14, 2012

1

JBIC’s Profile

JBIC is the international wing of Japan Finance Corporation (JFC) established on October 1, 2008, and will be separated from JFC on April 1, 2012, as a new JBIC.

Office4-1 Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-8144, Japan

Capital¥ 1,091billion*

Outstanding Loan and Other Financing¥ 8,467billion*

Outstanding Guarantees¥ 2,443.2billion** March 31, 2011, Account for JBIC Operations in JFC.

2

The mission of JBIC

JBIC is tasked with the following four missions.

Maintaining and improvingthe internationalcompetitiveness ofJapanese industries

Promoting overseas developmentand acquisition of strategically

important natural resourcesto Japan

Responding to disruptionsin financial orderin the international economy

Promoting overseas projects

for conserving global environment, such as mitigating global warming

JBIC’s activity under this mission added in April 2010 is called “GREEN”, Global Action for Reconciling Economic growth and Environment conservation.

3

Introduction of JBIC Facility (Export Loan)

Direct Loans to Foreign Buyers and Financial Institutions (Buyer's Credit (B/C) and Bank-to-Bank Loan (B/L))

4

Introduction of JBIC Facility(Overseas Investment Loan)

Direct and indirect financing which is provided for the projects undertaken by the firms incorporated in developing countries and regions in which Japanese firms have equity shares.

5

Introduction of JBIC Facility (Import Loan)

Financing for the import of strategically important materials to Japan,such as mineral and energy resources for Japanese.

6

Introduction of JBIC Facility(Untied Loan)

Requirement:・Substantial benefit forJapanese Companies

・Preservation of the globalenvironment

7

Structure and Functions of Finance Group of JBIC

Finance Group Department Designated Business Designated Countries

Energy, Natural Resources

and Environment

Finance Group

Oil and GasFinance Department

Development, imports and investments in oil, oil gas and natural gas

Canada, Norway, UAE, Iran, Qatar, Kuwait, Saudi Arabia, Other Middle Eastern countries, Papua New Guinea, Russia, Algeria, Nigeria, Venezuela, Brunei, Turkmenistan, Azerbaijan, Equatorial Guinea

Mining and MetalsFinance Department

Development, imports and investments in strategically important resources other than oil, oil gas and natural gas

Madagascar, Mozambique, Argentina, Chile, Peru, Bolivia, Australia, New Zealand, Brazil, Uruguay

Nuclear and RenewableEnergy Finance Department

Nuclear power; renewable energy, including solar and wind power; other energy related business including integrated coal gasification combined cycle (IGCC), carbon capture and storage (CCS), other energy-related business, and carbon trading

UK, France, Spain, Turkey, Other European countries, Kazakhstan, Uzbekistan, Mongolia, China, Egypt, Tunisia, Jordan, Niger

InfrastructureFinance Group

Power and WaterFinance Department

Power generation; transmission and distribution network; and water business, including water supply, sewage systems and industrial water.

Indonesia, Malaysia, Philippines, Vietnam, Singapore, Pakistan, Other Asian countries, Mexico, Jamaica, Panama, Colombia, Other Latin American countries

Transportationand TelecommunicationFinance Department

Urban transportation, high-speed rail way, roads, ports, airports, and telecommunications networks, etc.

US, India, Bangladesh, Sri Lanka, Maldives, Other countries in Oceania, Angola, Botswana, DRC, Lesotho, Malawi, Mauritius, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia, Zimbabwe, other African countries

Industry Finance Group

Global ManufacturingFinance Department

Exports of products in major manufacturing industries; and overseas local production and sales Korea, Hong Kong, Taiwan, Thailand

New Technologyand IndustryFinance Department

Cutting-edge technologies for supporting next generation industries, ships, aircraft, satellites, and the overseas business of small and medium enterprises; securitization; equity investment in funds

8

US$2.5 billion Commitment by JBIC at TICAD IV

At TICAD IV in May 2008, the Japanese Government announced JBIC's financial support (in loans, equity investments and guarantees) for Africa in the total amount of US$2.5 billion over the next five years.Since then through, JBIC has made an overall commitment equivalent to about US$ 2.2 billion of financial commitments for infrastructure development and natural resource related projects that would support Japanese business activities and economic growth in African countries.

TICAD IV and JBIC

9

JBIC Loans to Africa: Major Projects since TICAD Ⅳ

Signing Date Country Project Name Amount

Jul 9, 2008 South Africa Untied Loan for Eskom（Power Transmission & Distribution）

Loan 4,500 mil JPYGuarantee 3,000 mil JPY

Aug 15, 2008 Madagascar Overseas Investment Loan for Ambatovy Nickel Project Loan 400 mil USD

Sep 25, 2008 Egypt Overseas Investment Loan for Natural gas related project Loan 270 mil USD

Mar 26, 2009 South Africa Untied Loan for Transnet（Port Expansion）

Loan 21,000 mil JPYGuarantee 14,000 mil JPY

Aug 9, 2010 Egypt Buyer’s Credit for Energy Refinery Project(Project-Finance Based) Loan 540 mil USD

Sep 2, 2010 Egypt Buyer’s Credit for the National Authority for Tunnels(Metro Construction) Loan 7,900 mil JPY

Nov 24, 2010 Angola Buyer’s Credit for the Government of Angola(Textile Plant Rehabilitation) Loan 11,590 mil JPY

June 30, 2011 Mozambique Overseas Investment Loan for Woodchip Production and Manufacturing Project Loan 4.8 mil USD

10

Case Study：Overseas Investment Loan for WoodchipProduction and Manufacturing Project

Commercial BankJBIC

SOMACEL

Japanese paper-manufacturing

companiesLoan

Equity (100%) Woodchips

WoodchipsGuarantee

Sojitz

Loan

This loan will finance a woodchip production and sales project to be undertaken by Sojitz Maputo Cellulose, Limitada (SOMACEL), a wholly-owned subsidiary of Sojitz Corporation Group (Sojitz).

The woodchips produced will be sold to Japan through Sojitz and be used as a raw material of paper production.

As this projects provides a new supply source of woodchips to Japan, it has a significant implication for securing a stable supply of woodchips.

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Case Study：Buyer’s Credit for the Government ofAngola (Textile Plant Rehabilitation)

As the Angolan Ministry of Geology, Mines and the Industry implements the state-owned textile plant rehabilitation project, this loan will finance procurement of a textile production facility from Marubeni Corporation for the project by the Ministry.

The textile machinery and equipment to be installed in this transaction are manufactured by Toyota Industries Corporation and Murata Machinery, whose exports benefits from JBIC’s financial support.

This project marks the first step for the recovery of the Angolan textile industry, and is expected to lead to increased business opportunities for Japanese firms exporting textile machinery and equipment.

Governmentof Angola

JBIC Commercial Bank

Loan

Japanese Exporter Textile machinery

Marubeni

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JBIC Enhanced Facility for Global Cooperationin Low Carbon Infrastructure and Equity Investment: E-FACE

13

GREEN

AfricanGovernment / Agency

J B I C

Environmental preservation projects

LoansG Global Action forR ReconcilingE Economic Growth andEN Environmental Preservation

Eligible ProjectsSpecific projects and programs supported by GREEN need to aim at preserving global environment such as mitigating

global warming, and in principle to meet the following two requirements:

1. The project has a favorable impact on the preservation of global environment, such as significantly reducing GHG emissions; and

2. With regard to the impact on the preservation of global environment mentioned above, the project proponent measures the level of impact (Measurement), reports the result of this measurement (Reporting), and allows either JBIC or a JBIC-designated third party entity to verify the result (Verification).

Thank you

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